Construction Legal Made Easy

Karalynn Cromeens
  • 5.0 (9)
  • MANAGEMENT
  • UPDATED WEEKLY

Construction Legal Made Easy, hosted by licensed attorney Karalynn Cromeens, explores managing contractors, how to build a smarter business and avoid litigation. In this legal driven show, find the tools, detailed insight and confidence to side step common challenges and thrive in the construction industry.

  1. 5H AGO

    Your Ultimate Guide to Bidding and Scope of Work in Construction

    Contracts can decide everything. Karalynn Cromeens explains why she created Construction Legal Made Easy, shifting from her original podcast name and book, Quit Getting Screwed. Topics include bids as legal offers, scope of work, pay-when-paid clauses, liens, retainage, and negotiation strategies. The episode highlights legal pitfalls and resources for contractors. Key Takeaways Karalynn emphasizes that many subcontractors in the construction industry sign contracts filled with risky clauses because they don't read or understand them. The conceptual takeaway is that understanding and negotiating contract terms is essential for protecting your business from unfair or harmful obligations. The transcript highlights dangerous provisions such as "pay-when-paid" clauses, personal guarantees, and retention/retainage. The main takeaway is that subcontractors must be vigilant about these common pitfalls and know where the highest risks lie in contracts, so they can decide whether to accept or negotiate them. Karalynn explains the legal significance of itemized bids and the need to carefully review scopes of work, because what you sign in the contract—not just your bid—legally obligates you. The main idea here is to always create itemized bids and thoroughly compare them with contract scopes to avoid accidental acceptance of additional work. The discussion covers how to properly handle change orders, the importance of understanding lien rights, and trust fund rules for payments. The conceptual takeaway is that subcontractors should know the correct procedures to secure payment and legal protection, including always obtaining signed change orders before starting extra work. Karalynn aims to empower contractors to recognize and address risks in their contracts, encouraging them to negotiate terms rather than accepting them blindly. The main message is that collective awareness and negotiation can shift industry standards in favor of fairness, and accessing resources like her book and podcast can be valuable tools for education. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter!

    12 min

  2. FEB 16

    Trust Your Gut, Chapter Seven: Essential Payment Terms for Residential Construction Contracts

    Contracts either protect you or leave you exposed. Karalynn Cromeens reviews payment terms in residential construction contracts, focusing on getting paid and handling nonpayment. She covers milestone payments, invoicing, contract clauses, lien rights, state regulations, credit card disputes, and insurance-related payment issues. To prevent problems, contractors must pause work when payments lapse and use clear contract language. Key Takeaways 1. Setting clear payment terms is essential for protecting cash flow and smooth business operations. A contract should explicitly state how, when, and under what conditions payments are made—and what happens if they're delayed or withheld. 2. Contractors should implement a reliable billing process, such as milestone or percentage-based payments, and always clearly communicate these terms with clients. Relying on hope or goodwill isn't enough—written procedures minimize misunderstandings and ensure timely payment. 3. Your contract should provide you with leverage if payments aren't made, including the right to stop work and shift project schedules or even cancel the contract. These clauses protect contractors from unpaid work and project delays. 4. Knowing and protecting your lien rights gives you a legal tool to secure payment when clients refuse to pay. Lien laws vary by state and must be strictly followed, but properly executed liens can forcibly secure payment by encumbering the property you've improved. 5. Whether dealing with credit card payments (with risks like chargebacks and fraud) or insurance-related non-payments where clients keep the funds, a solid contract and clear documentation are vital. Always obtain authorizations for credit payments, and stop work promptly if insurance payment issues arise. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter!

    20 min

  3. FEB 9

    Trust Your Gut, Chapter Six: The Power of an Escape Clause in Residential Construction Contracts

    Contracts can end, even when nobody plans for it. Karalynn outlines the value of an escape clause in residential construction contracts during this reading of chapter six of her book Trust Your Gut. Comparing contracts to marriages, she shows how an exit clause can prevent lawsuits and financial risk if projects face issues. Without one, leaving a job may result in liability and legal trouble. Key Takeaways 1. An escape clause in a construction contract is essential. It acts like a "prenup" for builders—giving both contractors and homeowners a clear, agreed-upon way to exit a project without breaching the contract or causing unnecessary drama or legal trouble. 2. Without an escape clause, contractors are at serious risk—if they walk away from a project, they could be liable for extra costs, damages, or lawsuits. The escape clause provides protection from these risks by allowing a legal way out. 3. Proper use of the escape clause means following the contract requirements, usually providing 48 hours' notice. This process allows for a dignified, legal exit, and ensures payment for completed work and refund of any unused funds—protecting both parties. 4. The story of Kevin highlights that mistakes like underbidding can happen, but with an escape clause, contractors have options. They can renegotiate or exit without costly mistakes. Even without an escape clause, open communication with the homeowner can sometimes lead to amicable solutions. 5. If a contractor breaches a contract (or is accused of it), the legal process typically starts with a demand letter. Addressing a demand letter calmly and promptly—gathering documents, consulting a lawyer, responding—can resolve most issues before they escalate to costly lawsuits. Ignoring such correspondence can be financially disastrous. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here, and subscribe to our newsletter!

    17 min

  4. FEB 2

    Estate Planning Recommendations for Construction Professionals

    If you die without an estate plan in Texas, state law decides who gets your property, which can create delays, extra costs, and headaches for your family instead of following your wishes. Karalynn welcomes Jacques Leeds to the show to explain wills, trusts, and common employment law issues like discrimination and retaliation. Key Takeaway 1. Jacques Leeds shares insights about launching his own law firm right out of law school, emphasizing the challenges and opportunities of learning on the job, developing good habits, and carving out his own way of practicing law without being tied to traditional approaches. 2. Estate planning isn't just for the wealthy. Everyone has an estate plan, whether they make one themselves or leave it to state law. The main goal is to make life easier for loved ones after someone passes, by proactively making decisions and organizing assets. 3. Trusts offer significant advantages over wills, including avoiding probate, maintaining privacy, and providing flexibility in asset management and directives. Funding the trust properly (transferring assets into it) is crucial for it to be effective. Wills are simpler but require public probate and can lead to family disputes. 4. Wrongful termination cases in Texas must relate to discrimination or retaliation based on EEOC protected classes. Jacques Leeds's firm primarily represents employees and takes cases on contingency, highlighting how employment law is structured, what retaliation entails, and the importance of temporal proximity in claims. 5. The discussion includes nuanced employment issues like worker misclassification (1099 vs. W-2), tip pooling violations, and strong claims around workers' compensation retaliation, pregnancy, and disability. These cases are typically straightforward and have high success rates if the facts align. Learn more about The Leeds Law Firm here. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here.

    33 min

  5. JAN 26

    Top Tips for Contractors Facing Legal Disputes

    Karalynn breaks down the process of preventing and handling construction disputes, focusing on clear documentation and communication for both commercial and residential contractors. She emphasizes the importance of timely responses to notices and the need for thorough record-keeping to build a strong defense if litigation arises. By the end of this episode, you'll have a practical roadmap that highlights why avoiding litigation is crucial and how to navigate the process if it cannot be avoided. Key Takeaways 1. Documentation, clear communication, and timely responses are crucial to avoiding disputes in construction projects. Karalynn Cromeens emphasizes having a solid paper trail (emails, texts, documented meetings) regarding scope of work, changes, and resolutions to issues as they arise. 2. Maintaining meticulous records throughout a project (timelines, evidence, communication) sets the foundation for defending your position should a dispute escalate. Karalynn Cromeens explains how proper documentation can make or break a case, both in arbitration and litigation. 3. Understanding the litigation roadmap (from demand letters through trial or settlement) prepares you for what to expect and how to respond effectively. Karalynn Cromeens breaks down each stage, highlighting the importance of timely action, assembling evidence, and strategic decision-making. 4. Reaching a settlement or resolving disputes through mediation—even if it means compromising—saves time, money, and emotional energy compared to extended litigation. Karalynn Cromeens advises that swallowing some pride upfront often prevents much bigger losses down the road. 5. Arbitration is generally faster and handled by industry-knowledgeable professionals, whereas court litigation can be slower and subject to non-expert judges or juries. Karalynn Cromeens recommends considering arbitration clauses in construction contracts to help expedite dispute resolution and improve outcomes. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here.

    17 min

  6. JAN 19

    Don't Get Nailed Without a Lien: Lessons from the Construction Trenches

    Having a solid understanding of mechanics liens is crucial for contractors in the construction industry. In this episode, Karalynn explains that mechanics liens provide a powerful security interest in property, ensuring contractors have leverage to get paid for their work. Filing a lien can prevent an owner from selling or refinancing until payment is made. But it's essential to follow the proper steps, or you could face costly consequences. Key Takeaways 1. Karalynn explains that mechanics liens (also called contractors' or materialmen's liens) serve as a way for construction professionals to secure payment for their labor and materials by creating a security interest in property. This is a crucial legal tool in construction law to help contractors and suppliers ensure they get paid for their work. 2. A central concept highlighted is the distinction between unsecured debt (like a credit card balance, where the creditor can only pursue general assets) and secured debt (such as mechanics liens or mortgages, where specific property can be claimed if payment isn't made). Filing a proper mechanics lien turns what would otherwise be an unsecured debt into a secured one. 3. Karalynn emphasizes that the process for filing a lien is highly state-specific and requires strict adherence to legal requirements, such as timely notices and proper documentation. Failing to meet these requirements can invalidate a lien and even result in costly legal consequences. 4.  Send notices as soon as a payment issue is suspected, as there is no penalty for being early, but missing deadlines can forfeit lien rights. Proactive communication and timely action increase the chances of getting paid without protracted disputes. 5. While liens provide powerful leverage—preventing owners from selling, refinancing, or completing permanent financing until the lien is resolved—they come with serious risks if improperly filed. The process offers strong protection for payment, but errors or dishonest practices can lead to lawsuits, attorney's fees, or additional liabilities. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here.

    16 min

  7. JAN 12

    Trust Your Gut, Chapter Five: Don't Let Your Construction Project Become a Legal Nightmare

    In this reading of chapter five of Karalynn's book Trust Your Gut, she lays out the importance of change orders in residential construction contracts, revealing how they protect both the project's progress and your financial interests. Without clear documentation and upfront payment, contractors risk financial loss and disputes. Ted's cautionary tale shows that failing to use proper change orders can jeopardize everything. Key Takeaways 1. Change orders are essential for any residential construction project. They formalize any modifications to the original contract and protect both parties from misunderstandings or disagreements about scope, cost, and timelines. 2. Proactively explaining the change order process to homeowners builds trust, sets clear expectations, and ensures smoother project management. This conversation should happen before work begins to prevent confusion or surprises later. 3. Every change—big or small—should be documented in writing and signed by both contractor and homeowner. Verbal agreements aren't enough. Proper paperwork is crucial for getting paid and for resolving disputes if they arise. 4. Contracts should clearly state who is authorized to approve changes and extra work. Homeowners must direct requests to the project manager, not subcontractors, and subs should never act on homeowner requests without approval. This keeps the contractor in control and prevents unexpected costs or conflict. 5. The story of Ted highlights the risks of neglecting change order documentation. Not having signed change orders nearly cost him his assets and led to a legal nightmare. Contractors protect themselves, their finances, and their reputation by thoroughly documenting all changes. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here.

    16 min

  8. JAN 5

    Trust Your Gut, Chapter Four: Avoiding $10,000 Mistakes - Tales from the Contractor's Legal Toolbox

    Many contractors mistakenly believe a scope of work alone is enough to protect their interests. In this episode, Karalynn reads from chapter four of her latest book Trust Your Gut, and explains that unclear or incomplete scopes lead to costly disputes and unpaid work. Clarity and detail are the keys to setting the right expectations. A comprehensive contract is your real safeguard in the construction business. Key Takeaways 1. A scope of work is not the same as a contract. While the scope sets out what will be done, a full contract should include additional provisions that protect all parties. Relying solely on a scope of work can lead to misunderstandings and disputes. 2. The more detailed and explicit the scope of work, the less room there is for confusion. Clearly itemizing each component helps ensure both contractor and client share an understanding, fostering trust and reducing the likelihood of conflict. 3. Without a well-documented scope of work, disputes often hinge on credibility rather than facts, and contractors are at a disadvantage in court. A clear scope acts as protection by eliminating ambiguity about what was agreed upon. 4. Contractors are not entitled to payment for work performed outside the agreed scope unless it's formally documented through a change order. Doing extra work without it means you may not get paid. 5. For projects requiring permits, having a separate design contract helps clarify the real scope (after permits are approved) and ensures compensation for preliminary work. This two-step process protects contractors from surprises and unreimbursed effort. Grab Karalynn's new book Trust Your Gut here. Follow Karalynn Cromeens on Facebook here. Follow Karalynn Cromeens on Instagram here. Follow Karalynn Cromeens on LinkedIn here. Watch the show on YouTube here. Learn more about The Cromeens Law Firm here.

    12 min
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About

Construction Legal Made Easy, hosted by licensed attorney Karalynn Cromeens, explores managing contractors, how to build a smarter business and avoid litigation. In this legal driven show, find the tools, detailed insight and confidence to side step common challenges and thrive in the construction industry.

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